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Wednesday, June 16, 2010

Should You Consider Buying A Short Sale?

Short sale – real estate offered for sale where the most likely sale price will be less than the mortgage owed.

The key component of the short sale process: any offer signed off on by the seller of a short sale will require lender approval.

This is where being an appropriate buyer candidate for a short sale comes in.... The time for approval varies from lender to lender. I have seen some get approved in less than 60 days. I have seen some drag on for a year! I have read cases where the lender foreclosed while the process was in this limbo land in between offer and approval!

Your buyer's agent will need to screen your short sale prospective properties as well to find out if the ground work has been completed. There is a lot of paperwork that takes place before a property is ready for the short sale process.

Short sales are usually discounted below the normal market price. This is because of the process. The market prices may drop during the approval process. As a buyer, you could have had that earnest money in the bank earning at least a percent or two interest!

Although there are lots of short sale properties in Brevard County Florida, I believe very few buyers are good candidates for the short sale transaction because most have a less than flexible time line.

If you are trying to decide if a short sale property is a realistic consideration, give me a call at 321-693-3850 or drop me an email.

Gary L. Waters PLLC, Florida licensed real estate agent, Century 21 Baytree Realty, Rockledge, Florida serving Florida's Space Coast including the cities and communities of Melbourne, Viera, Rockledge, Suntree, Merritt Island, Cocoa Beach and the surrounding region. Whether your interest lies in a 55+ community such as Heritage Isle, a golf course community such as Baytree National Golf Links or water front, give me a call!